Effective immediately, a new License Exception C59 for Strategic Trade Authorization (STA) has been added to the Automated Export System (AES).

The Bureau of Industry and Security (BIS) has created this new exception under §740.20 of the Export Administration Regulations that authorizes the export, re-export, and transfer (in-country) of specified items to authorized destinations that pose relatively low risk. Use of the license exception STA is conditioned upon the creation and exchange by the parties to the transaction of notifications and certifications designed to provide assurance against diversion of such items to other unauthorized destinations. The exception does not alter any of the General Prohibitions in the Export Administration Regulations against unlicensed exports, re-exports, or transfers to proscribed end users, end uses, or destinations. This rule is part of the Administration's Export Control Reform Initiative, undertaken as a result of the fundamental review of the U.S. export control system that the President announced in August 2009.

United States Principal Parties in Interest and their authorized filing agents (AES filers) must follow the following new reporting requirements when using C59-STA to prevent the return of fatal errors from AES.

When reporting C59 in the AES License Type field, also report STA in the license number field.

Export Control Classification Number field is required. Refer to §740.20 of the Export Administration Regulations for those items that are ineligible for the BIS license exception STA.

Only destinations identified in §740.20 of the Export Administration Regulations are eligible.

Foreign Trade has GLOBAL REACH
Foreign Trade has just created and published its official blog, "Global Reach." Visit it to discuss the Foreign Trade Regulations, Export Filing (AES), Trade Data, and other trade related topics. Posts are current and relevant to you as the filer, exporter, data user, or curious blog reader. (January 5, 2010)